When Will the Fed Raise Rates?

Paul Krugman posts this chart from the Cleveland Fed looking at the futures market’s take on when the Fed will increase interest rates.

The market seems to expect a rate increase by this summer. Krugman, naturally, doesn’t see a need for the Fed to raise rates through 2012. I think it’s very likely that the Fed will raise rates before many people expect they will. Once a rate increase comes, my view of the market will change. Until that happens, stocks are a very good place to be.

Posted by on December 20th, 2010 at 2:29 pm


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